Reintroducing the FSM Social Security Voluntary Contributions Plan
Category : Press Releases
The FSM Social Security Administration wishes to invite all interested FSM citizens working abroad to participate in the program. Public Law 14-86, which was passed on October 23, 2006, created a new provision within the social security law that would allow a citizen of the FSM working abroad to voluntarily contribute into the system to earn the right to benefits. FSM citizens who are actually working outside of the FSM, Palau or Marshalls can make voluntary contributions. If you are interested to apply, you may find the enrollment forms on our website at www.fsmssa.fm and fill them out. Once these forms are filled and sent to the main office for processing, the citizen only has to worry about feeding his or her savings account, so there would be enough to contribute from. After every transaction, a receipt will be sent to the contributor while the bank documents the transfer in the contributor’s passbook. Voluntary contribution for citizens working abroad through the ACH program is even a better option for the citizen running business as sole proprietor, since the individual is paying as if he or she is self-employed (14% not 7%), this way one could contribute enough to become fully insured in no time at all.
Who is Eligible to apply?
A person who is self-employed or working outside of the FSM, Republic of Palau, and Republic of the Marshall Islands may voluntarily contribute to the Social Security system under certain circumstances and receives quarters of coverage and accumulate payments to their minimum contribution requirements. It applies also to FSM citizens now. For persons who are self-employed sole proprietors with no employees in the FSM, which can include farmers and fishermen, and who make less than $10,000.00 per year, may make contributions to the Social Security System. The person will be deemed to make $1,250.00 per quarter, and they must pay the employee and the employer’s share. After January 1, 2013, the payment is $93.75 for the employee’s share and $93.75 for the employer’s share, totaling $187.50 per quarter. Any self-employed person electing to make such voluntary contributions must file quarterly returns and is subject to the same deadlines as any other taxpayer. If revenue received by a self-employed person is $10,000.00 or more, they are subject to the regular mandatory contribution provisions. For persons who are self-employed or regular employees outside of the FSM, Republic of Palau and Republic of the Marshall Islands, they may make voluntary contributions to receive quarters of coverage and to accumulate payments to their minimum contribution requirements, even if they are contributing to another Social Security system. The person must make payments to FSM SSA in the FSM, and file a quarterly return. Any person making these voluntary contributions is subject to the same deadlines as any other taxpayer. The person must also pay both the employee and employer’s share of the social security tax. The minimum declaration of earnings is $1,250.00 per quarter, but the employee may declare more earnings, and pay the tax on the earnings declared.
Voluntary Contributions for FSMSSA’s Monthly Retirement Benefits
A participant is eligible to all types of benefits, not just retirement. Moreover, you can pay social security taxes as a sole-proprietor without employees with a gross revenue below $10,000 each year and report your quarterly tax returns in the fair amount of only $187.50 in each quarter. You do not have to apply for a job, yet contribute for a better future which you greatly deserve. Without the voluntary contribution program, you would be left out of the system. The voluntary contributions allow participants to earn eligibility while residing abroad. Feel free to contact us for more information.